FTX seeks to recoup SBF’s donations to US politicians FTX seeks to recoup SBF’s donations to US politicians
As a part of the restructuring process, FTX's new management led by John Ray III said it will set up a process to accept refunds from recipients of SBF's donations.
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Updated: Dec. 20, 2022 at 11:08 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt crypto exchange FTX said it is working to recover all political donations made by its disgraced founder Sam Bankman-Fried, FT reports.
Sam Bankman-Fried (SBF) was the darling of many U.S. politicians until his billion-dollar crypto empire collapsed on Nov. 11.
Following FTX’s bankruptcy, SBF was arrested in the Bahamas, and charged by U.S. authorities for crimes relating to money laundering and mismanagement of customers’ funds for political donations.
Specifically, the Southern District of New York (SDNY) alleged that SBF made donations to U.S. politicians in the name of other persons, which is a violation of U.S. campaign finance regulations.
SBF alongside top FTX executives reportedly donated over $70 million to U.S. politicians during the 2021-2022 election cycle. SBF was named the fourth megadonor for the 2022 midterm elections, with a contribution of over $39 million.
As a part of the restructuring process, FTX’s new management led by John Ray III said it will set up a process to accept refunds from the politicians.
Some recipients of SBF’s donation have reportedly approached the company to return the funds, while others said they will donate the funds to charity.
However, FTX has warned that donating the funds to charity will not stop the company from seeking a refund and taking legal action against the receiving organization.
“To the extent such payments are not returned voluntarily, the FTX debtors intend to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced,” FTX said.
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.